Actually the explanation is probably quite simple.
They have to sell about $20 million in stock in order to make all this work. Acquistion, uplisting, convertible debt repayment, etc.
So...they had to make the price and terms attractive enough to sell that dollar value of stock. The ONLY way to do that was to make the offering attractive enough to get enough interest to fork over enough money to meet that goal.
And we now know that required a 70% discount to the market at that time and a full coverage warrant as well.
That is where the demand was sufficient to get that amount of money...it’s a balancing act. If the price was higher they would reduce the demand and the resulting dollars received and if they lowered it further they would leave money on the table.
This is a pretty simply concept of supply and demand.
If they had all this excess demand as they suggest then they could have raised the price until it hit a balance of demand and price to get the $20 million resulting in lower dilution.
As I have always said, I believe Rory will get Verb to Nasdaq, but it will be on the backs of the legacy shareholders. Those subscribers coming in at $3.65 WITH a warrant attached are getting a deal most current shareholders would have loved to get when they were sitting on or buying stock at $17 before the offering price was revealed.
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